CBEC circular on export of software – ref alleged 10K crore demand

After months of discussions with the CBEC-Service tax team, the circular clarifying the place of provision for software exports is out.


You would recall in Nov, that several service tax refunds were rejected in Mumbai, in the pretext that data, emails etc were received in India. AS NASSCOM we had representd the matter to the CBEC and Revenue and were given an assurance that the matter is being looked into. A press release reassuring that no hasty decisions will be taken was also released by the MoF.


We are extremely delighted to share that, after several interactions, where the NASSOCM team with or without Industry members, outlined typical fact patters of the contracting and development activities undertaken by the Industry, the CBEC has finally issued the circular, where they clarify that place of provision of services would be the recipient of services, thereby according export status. We hope that this clarification will put to rest the ongoing disputes and denials that companies have faced.


We welcome your feedback.


We are glad that our quiet but steadfast focus on the issue has yielded results. We continue to work for our members to ease the business environment.

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